Finland will implement the Crypto-Asset Reporting Framework domestically by 2026, requiring crypto service providers and exchanges to report transactions for both Finnish and non-Finnish users.
The move marks Finland as an early adopter among EU nations, potentially influencing market transparency and compliance within the cryptocurrency sector.
New Reporting Obligations for Crypto Service Providers
Starting in 2026, Finland will operationalize its Crypto-Asset Reporting Framework (CARF), making it one of the first EU countries to do so. This move, led by the Finnish Tax Administration, imposes new reporting obligations on crypto-asset service providers (CASPs).
The Finnish Tax Administration, alongside the Government of Finland and Ministry of Finance, is spearheading this initiative. Changes require CASPs to report transactions involving both Finnish and non-Finnish service users, ensuring comprehensive data collection on crypto activities.
Scope of the New Framework
All crypto assets serviced by CASPs fall under the new regulations, including BTC and ETH. This extensive initiative encompasses reporting both domestic and international transactions, boosting regulatory oversight in the growing crypto sector.
Finland's Position in EU Crypto Regulation
Historically, similar EU directives like DAC8 and CRS have enhanced tax compliance, but without significant market disruption. The CARF establishes Finland's position as a forerunner in EU crypto regulation, aligning with over 48 jurisdictions in data exchange by 2027.
Anticipated Outcomes and Compliance
Potential outcomes could include increased regulatory compliance costs for CASPs, akin to those seen under the DAC8 directive, although no severe market impact is anticipated. The Finnish Tax Administration continues to provide updates to ensure transparency and systematic compliance.
"Starting in 2026, crypto asset service providers reporting to Finland must collect information on service users and their purchases, sales and transfers of crypto assets. Information will be collected on both Finnish and non-Finnish service users." — Vero.fi